4 ms·
Why is $3500 the magic number?
by reilly3000 11y ago
Why is $3500 the magic number?
- zacharycohn 11y agoAbove $3500, and it falls into a category with more regulations and requirements about competition, sourcing, bidding, etc. Under $3500, and it does not. :)
- fweespeech 11y agoPurchase authority in the federal government is structured by price ceilings, basically. So if they stay below $3500, they can ignore all the red tape because it goes into the "We don't care" bucket.
- Jtsummers 11y agohttps://www.acquisition.gov/sites/default/files/current/far/html/Subpart%202_1.html https://www.acquisition.gov/sites/default/files/current/far/... Micro-purchases exist to allow agencies/offices to make purchases of more common things without going through normal acquisitions procedures. This might be a software license or office supplies or a new projector for the conference room. Here, they're using it for software development time. It's a faster way to spend money than when purchasing anything over $3500, which means you (usually) get the product/service faster as well.
- ourmandave 11y agoSo $3500 is considered "pay for it out of petty cash".
- protomyth 11y agoYep. Reading the federal rules on the difference between equipment and supplies is a good way to understand some of the "fun" in federal budgets.